The value of Scotland's private rented sector (PRS) grew faster than anywhere else in the UK last year, according to a new report.

The market north of the Border rose by 11.9 per cent, according to the latest Buy To Let Britain study, bucking the wider trend of a slow-down. The value of Scotland's PRS now stands at £76bn, up £8.1bn on a year earlier.

This was in contrast to the overall UK market, which was flat at £1.4trn. Kent Reliance, the producer of the report, blamed the slowing trend on economic uncertainty and "government intervention" such as higher stamp duty and reforms to the tax treatment of mortgage interest.

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The growth in Scotland was largely driven by rapid increases in house prices, which rose by nearly 7.6 per cent during the period under review. Yields of 5.3 per cent were far higher than the UK average of 4.4 per cent.

Nearly two-thirds of Scottish landlords said their rents had increased during the past year, while 36 per cent reprited rising tenant demand. In total, Scottish landlords received a total of £4bn in rent during the last year.

But the introduction of tighter regulation and higher taxes left landlords elsewhere "reeling", Andy Golding said. Golding is chief executive of OneSavings Bank, which trades under the Kent Reliance and InterBay brands in buy to let.

“Political opinion may be set against the PRS, but without it, the housing crisis would be deeper still," he said.

"First-time buyer numbers, despite recent fanfare, are a long way from pre-recession levels and with household numbers growing, and new housing starts inadequate, it is the PRS that will continue to pick up the slack. Policy should recognise that, and support growth in supply across all tenures.

“A housing market with dwindling supply of rental accommodation yet growing demand would, without a significant rise in affordable housing, provide the worst of all worlds for tenants: higher rents, with less choice and security, hampering their ability to save to buy a home.”